Price of bananas likely to increase this year

The price of bananas is likely to increase this year, after the falling value of the pound hits Britain's favourite fruit.

Bananas are the most popular item, in volume terms, that shoppers put in their weekly shopping basketPhoto: AP

By Harry Wallop, Consumer Affairs Editor

1:35PM GMT 13 Jan 2009

Banana prices have increases by more than a third over the past year and further price rises are on the cards, as the impact of the weak pound hits home, according to trade magazine The Grocer.

A kilo of bananas has rocketed from an average 70p at the big four High Street supermarket chains a year ago to 94p this week with a 14 per cent price increase since last November.

Bananas are the most popular item – in volume terms – that shoppers put in their weekly shopping basket and they are frequently cut in price by supermarkets as part of their ongoing price war.

However, with Bananas bought from dollar-based countries, and duty charged in euros, importers said that they had no choice but to pass on higher costs.

Leading producers predict that further rises are on the way and Irish supplier Fyffes announced this week that it would be seeking 'significant increases in selling prices in all key markets "to offset the effect of the strengthening of the dollar against sterling".

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Chris Mack, chairman of leading fruit importer Fresca Group told The Grocer: "I think we will see a significant increase in the retail price of bananas this year, driven by the exchange rates." While not putting a figure on the price rises, Mr Mack said that the cost of importing bananas had gone up 25 per cent in the past 12 months.

Though prices are climbing, and likely to carry on moving upwards, because supermarkets use the price of bananas to win over new shoppers, the price is in fact lower than in previous years.

Between 1986 and 1994, according to the Office for National Statistics, the price of bananas remained consistently above £1 a kilo.